Form 1031 Instructions Version 3.0

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Instructions for Form 1031
Small Business Investment Company
(SBIC) Portfolio Financing Report
Version 4.0
Date:
10/30/2026
Prepared by the
Office of Investment and Innovation
U.S. Small Business Administration

Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

Table of Contents
I.

Introduction ....................................................................................................................... 1

II.

SBA Form 1031 Overview ................................................................................................... 2
A.

Purpose ........................................................................................................................... 2

B.

General Structure ........................................................................................................... 2

C.

Limitations....................................................................................................................... 2

D.

Other References ............................................................................................................ 3

III.

Form 1031 Requirements .................................................................................................. 4

A.

System Requirements .................................................................................................... 4

B.

Due Date and Filing Requirements ................................................................................. 4

IV.

Form 1031 Workbook Navigation and General Features................................................... 4

A.

Navigation ...................................................................................................................... 4

B.

General Features ............................................................................................................ 4
Completing the Form 1031 ............................................................................................... 6

V.
A.

Part A – Small Business .................................................................................................. 7

B.

Part B – Pre-Financing Data .......................................................................................... 12

C.

Part C – Financing Information .................................................................................... 13

D.

Part D – Passive Business Financing Information ........................................................ 16

E.

Part E – General Information......................................................................................... 16

F.

Certification ................................................................................................................... 16

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

List of Exhibits

Exhibit II-1: Form 1031 Section List .......................................................................................... 2
Exhibit IV-1: Form 1031 Workbook Key Features ..................................................................... 5
Exhibit IV-2: Field Description Example .................................................................................... 5
Exhibit IV-3: Form 1031 Field Selection Example ..................................................................... 6
Exhibit V-1: Part A – Small Business Data Mandatory Fields .................................................... 7
Exhibit V-2: Part B – Pre-Financing Data ................................................................................ 10
Exhibit V-3: Part C – Financing Information ........................................................................... 11

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

I. Introduction
This document explains how to complete the Small Business Administration ("SBA") Form 1031, the
Small Business Investment Company ("SBIC") Portfolio Financing Report ("Form 1031").
SBICs must submit Form 1031 quarterly—four times a year—covering all financings made during the
previous calendar quarter. Each submission is due within 30 days after the quarter ends, and the
Licensee certifies the accuracy of those financings as part of that single quarterly filing. If an SBIC made
no financings during the quarter, no Form 1031 need be submitted for that quarter.
SBA collects Form 1031 as a Microsoft Excel workbook, giving SBICs the flexibility to enter data in a
familiar format and easily import or paste information from other sources. Once you certify that the
information is complete and correct to the best of your knowledge, you submit the file to SBA through
a secure portal.
The remainder of this document walks through each section of Form 1031 and explains how to complete
it.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

II. SBA Form 1031 Overview
A. Purpose
The SBA Form 1031 collects Portfolio Concern Financing information as SBA’s primary
source for compiling statistics on the SBIC program as a provider of capital to small businesses.
SBA also pools information provided by individual SBICs to analyze the SBIC program as a
whole and the impact of SBIC Financings on the growth of small business.
The information provided is protected to the extent permitted by law, including Exemptions,
4, 6 and 8 of the Freedom of Information Act (FOIA) 5 U.S.C. 552, which allow SBA to exempt
from disclosure financial data on individual companies.
B. General Structure
The SBA Form 1031 is contained in the SBA Form 1031 Workbook, comprised of the
worksheets (or tabs) identified below:
Exhibit II-1: Form 1031 Section List
Form 1031 Worksheet Tab
Part A Small Business Data

Part B Pre-Financing Data
Part C Financing Information
Parts D and E
Certification

Description
Contains general information on the portfolio company / small business being financed, including
the name, employer identification number, the North American Industry Classification System
(NAICS) code, location, contact information, and general information.
Contains information regarding the company prior to the Financing, including status, stage,
enterprise value, employees, and financial information.
Contains key information regarding the Financing, including relevant dates, Licensee’s
participation, deal information, interest rates, ownership, purpose (or uses) of the financing and
other critical information needed to help assess regulatory compliance.
Part D provides instructions regarding required passive business financing information if the
Licensee uses a passive business to finance its portfolio company. Part E provides general
information regarding SBA Form 1031.
This contains the Licensee’s certification of the financings.

A tab is also provided to help the SBIC search for the appropriate North American Industry
Classification System (NAICS) codes for entry into Part A.
C. Limitations
The provided Excel Workbook performs several computations throughout to help populate
the various schedules and statements. SBA has locked the workbook and the corresponding
formulas.
Since SBA imports the data from this form into its own databases, SBA is expecting the
format presented in the provided workbook. As such, SBA will reject any submission that
alters the format or placement of the data.
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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

To the extent that such Licensee believes that the form template is incorrectly calculating
any value or that a calculated value should be changed to report fund metrics accurately, the
Licensee is required to take the following steps:
a. Complete the Form provided by SBA, without modification;
b Print and sign the form and make any necessary corrections using red ink (on
the hard copy), with the editor’s initials beside any correction;
c.

Provide a written explanation, signed by management, as to each
correction; and

d. Forward the corrected Form 1031, with signed explanation, to its
respective SBA Investment Portfolio Management Analyst, in .pdf form,
on or before the date on which the Form 1031 is due.
D. Other References
For SBA to monitor its SBICs in a consistent manner, SBA has also established several
documents that should be used as references in completing your Form 1031, as follows:
•

SBIC Regulations 13 CFR 107: This contains the regulations for the SBIC program,
including definitions of several of the terms used in the preparation of the Form 1031.
The regulations also establish the general reporting requirements for the Form 1031.

•

Accounting Standards and Financial Reporting Requirements: This document
provides guidance to SBICs on accounting policies and procedures, financial
reporting to SBA, and selection of an auditor.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

III. Form 1031 Requirements
A. System Requirements
You will need a Microsoft Excel compatible with Version 2016 or Microsoft 365 to complete
the Microsoft Excel workbook. You will also need internet access such that you can submit your
workbook and any supplemental material to SBA’s secure portal.
B. Due Date and Filing Requirements
All SBICs are required to submit the Form 1031 within 30 calendar days following the end
of the calendar year quarter in which the financing closed.
For example, if a Licensee closes a financing on February 10, 2023, another financing on
March 15, 2023, and a third financing on March 31, 2023, the Licensee will need to submit the
related Form 1031 no later than April 30, 2023, containing all three of these financings.
If SBA places a Licensee on the Watch List as described in 13 CFR § 107.1850, SBA may require
more frequent reporting.

IV. Form 1031 Workbook Navigation and General Features
A. Navigation
Each of the sections in Exhibit II-1 represents a separate worksheet/tab within the Form 1031
workbook. You may go to each worksheet by clicking on the tab at the bottom.
B. General Features
The following exhibit shows several of the key features discussed in this section.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Exhibit IV-1: Form 1031 Workbook Key Features

Each of these features is explained below,
1. Fields (Data Entry and Calculated): As a general rule, the fields that need to be

completed are white or unshaded. Shaded cells represent titles or formulas that are
calculated or attempt to look up a value elsewhere.

2. Field Explanations: Most data fields will also provide a description of the field. The

exhibit below provides an example of this feature for portfolio company name in
Part A.
Exhibit IV-2: Field Description Example

3. Drop-Down Fields: Several of the input cells have drop-down menus from which you

may select values, such as the State field. When you click on the field, you will see if
there are selections.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Exhibit IV-3: Form 1031 Field Selection Example

V. Completing the Form 1031
This section will provide general instructions for completing the Form 1031. You should
navigate to the appropriate tab as described in Section IV-A. Throughout the form, SBA has tried
to minimize input by calculating fields and pulling information entered elsewhere in the form.
These fields will be described in this section and clearly identified by bold italics and
highlighting in blue.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

A. Part A – Small Business
Part A, located on the first worksheet tab, provides information about the portfolio
company being financed. For each portfolio company you Finance during the reporting period,
you must complete the data as described in the table below. If you provided multiple
financings for the same portfolio concern during the reporting period, you need only
provide one row of data for the portfolio concern in Part A.
Exhibit V-1: Part A – Small Business Data Mandatory Fields
Field/Label

Instructions/Description

For calendar year quarter beginning

Enter the first date of the calendar year quarter (1/1, 4/1, 7/1, or 10/1) for which you
are reporting your financings in mm/dd/yyyy format. For example, if you are reporting
for the first quarter of calendar year 2026, you would enter: 01/01/2026).

Name of Licensee

Ener the name of your SBIC.

License No.

Enter your 8-digit SBIC license number as a whole number. The form will automatically
format it into the license number format.
Enter the name of the operating portfolio concern. If you provided financing to a
passive business (see 13 CFR 107.720(b)):

Portfolio Company Name

•

With a single operating subsidiary – enter the name of the operating portfolio
concern and follow the instructions for Part D – Passive Business Financing
Information.

•

With more than one operating subsidiary – enter the name of the passive
business you financed and follow the instructions for Part D – Passive
Business Financing Information.

If you directly financed an operating portfolio concern with subsidiaries, you only need
to enter the name of the consolidated operating entity.
Employer ID

NAICS Code and Industry

Enter the portfolio concern’s 9-digit employer ID number as a whole number. The
worksheet will format the number appropriately. If the company is newly formed and
awaiting an employer ID number, enter as "A- mmddyyyy" where "mmddyyyy"
indicates the date it applied.
Select the NAICS Code and Industry for the portfolio company. If you need help
identifying the NAICS code, use the search tool located on tab NAICS Search
(accessible by clicking on “Search” in cell C7 or you can go to
North American Industry Classification System (NAICS) U.S. Census Bureau.

Critical Technology (if applicable)

If you are an SBICCT licensed fund, select from the drop-down list which of the critical
technology applies to this investment.
These columns identify the location for the main headquarters for the portfolio
company being financed.

Location

•

Address 1

Enter the street address for the portfolio company’s headquarters. Do not use
abbreviations other than directional (N, S, SW, etc) and do not use punctuation.

•

Address 2

Use Suite, floor, apartment, etc No abbreviations. No punctuation.

•

City

Enter the city for the portfolio company’s headquarters office.

•

Zip Code

Enter the zip code for the portfolio company’s headquarters office.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
•

County

Enter the county for the portfolio company’s headquarters office. Do not enter the
word "County".

•

State

Select the State abbreviation associated with the State of portfolio company’s
headquarters office.
These columns identify the name and email address for the person that SBA may
contact at the portfolio company to validate financing information.

Contact

•

First Name

Enter the first name for the contact person.

•

Last Name

Enter the last name for the contact person.

•

Email Address

Enter the email address for the contact person.

Other

Form of Business

Smaller Enterprise?
Date Business Established
Technology Developed with
SBIR/STTR Funding?

These columns identify other information of interest to SBA in evaluating the
Licensee.
Select the business form/structure from the following:
Sole proprietorship
Partnership
LLC - Limited Liability Company
C Corporation
S Corporation
B Corporation
Cooperative
Other Corporation
Identify whether the portfolio company at the time of financing qualifies as a smaller
enterprise, as defined in §107.710.
Identify the date the small business concern was established. If the company was
formed as a result of an acquisition, identify the date of the acquisition.
If the company either received a Small Business Innovation Research/Small Business
Technology Transfer (SBIR/STTR) grant or the company owns the intellectual property
associated with technology that was funded in part with a SBIR/STTR grant, select
“Yes”. Otherwise, select “No”.

SBIC/STTR Awardee Name

Enter the name of the SBIR/STTR award winner referenced in the previous question.

Website

Enter the Uniform Resource Locator (URL) address for the portfolio concern’s website
if they have a website. If they do not have a website, enter “None”.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

B. Part B – Pre-Financing Data
Part B of the Form 1031 includes pre-Financing data. The data is used to identify key
financial and economic data points prior to the SBIC Financing. It is critical for Licensees to
complete this section for SBA’s financial and economic analysis, including:
•

Analyzing financial changes to the portfolio concern as part of SBA’s monitoring process.

•

Assessing the economic impact of the Licensee and the SBIC program by comparing key
statistics prior to Financing and subsequent to Financing to assess changes to the
portfolio concern.

•

Assessing how both the Licensee and the SBIC program compares to the industry
financings to assess how the program supplements and serves gaps in small business
financing.

•

Assessing potential policy changes to the program.

Similar to Part A, if you have multiple Financings during the reporting period, you only
need to complete Part B once for each portfolio concern financed based on your first
Financing during the period. As such, the portfolio company name and associated employer ID
number will be automatically pulled from Part A into Part B. The following table describes each
of the fields you must complete in Part B for each portfolio company financed during the reporting
period.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Exhibit V-2: Part B – Pre-Financing Data
Field/Label

Stage of Company

Instructions/Description
Select the stage of the company at the time of financing. If you provided more than
one financing to the portfolio company during the reporting period, you should
identify the stage at the earliest of those financings. The stage of the companies
includes Seed/Pre-Seed, Early, Expansion Stage, Growth, Late, and Public.

Pre-Money Valuation (Enterprise
Value)

Identify the pre-money enterprise value of the portfolio company being financed. The
enterprise value is computed as the equity value (market capitalization) plus debt
minus cash prior to closing of the Financing.

Prior Fiscal Year End Date

Identify the date for the portfolio company’s fiscal year preceding the financing. For
example, if the financing date of a company is April 1, 2026, and the portfolio
company’s fiscal year end is in December, the date entered would be 12/31/2025.

Gross Revenue for Prior Fiscal Year

Identify the gross revenues for the portfolio concern in the fiscal year immediately
preceding the Financing.

After-Tax Profit/(Loss) For Prior
Fiscal Year

Identify the net income or after-tax profit (loss) for the portfolio concern in the fiscal
year immediately preceding the financing.

Federal Taxes for Prior Fiscal Year

Identify the federal taxes incurred for the portfolio concern in the fiscal year
immediately preceding the Financing.

State Taxes for Prior Fiscal Year

Identify the state taxes incurred for the portfolio concern in the fiscal year
immediately preceding the Financing.

Net Worth at End of Prior Fiscal Year

Identify the net worth of the portfolio company as of the end of the prior fiscal year
end date. Net worth is defined as the total of all assets minus the total of all liabilities.

Number of Employees at
Financing

Identify the number of full-time employees at the time of Financing.

Number of Employees with Equity
Ownership at Financing Date

Identify the number of employees who had equity ownership as of the financing date.

C. Part C – Financing Information
You must provide information for each Financing (except guarantees) you provided to all
Portfolio Concerns during the reporting period, as reported in Part A. SBA uses this information
to assess details regarding SBIC Financings, including timing, amounts, structure, terms, total
financing dollars received by the portfolio concern because of the deal, SBIC participation, how
the funds will be used, and information needed to assess regulatory compliance.
If you provided multiple Financings to a portfolio concern during the reporting period, you
must provide information regarding each Financing. For the purpose of reporting on Form
1031, the Financing would be evidenced based on a contract signed by both you and the

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

portfolio concern and may include loans, debt, and equity securities, as discussed in 13 CFR
Part 107. You must report the Financing amount stated in the contract, not the net amount
disbursed to the portfolio concern.
For example: ABC SBIC provides a loan to Acme Co. for $1 million on January 1, 2021, to fund
Acme Co. as it closes on a round of financing. Acme Co. closes on a $20 million capital raise on
March 15, 2021, in which ABC SBIC agrees to convert its loan into equity and purchases an
additional $5 million in equity financings. ABC SBIC would report the loan to Acme Co for $1
million as one Financing with a closing date of January 1, 2021, and another Financing for $5
million on March 15, 2021. The Form 1031 for Part A and B would contain a single line of
information on Acme Co based on the January 1, 2021, financing date, but would contain two
Financing records in Part C.
The following information is required in Part C for each Financing as follows:
Exhibit V-3: Part C – Financing Information
Field/Label Instructions/Description
Portfolio Company Name

Select the portfolio company from the drop-down list.

Employer ID

This is a calculated field. It looks up the employer ID number based on the portfolio
company name you selected above.

Date of Financing

Enter the date that the Small Business and the Licensee sign a formal contract or agreement
of financing, or the effective date of such a contract or agreement if the effective date is
different from the date the contract was signed.
Enter the date that the Licensee makes or schedules the financing disbursement. The date of
disbursement may differ from the date of financing.

· For financing agreements with multiple, non-contingent disbursements:

•

Enter the date for the total planned financing amount and note the additional
disbursements in Financing Comments column.
· For financing agreements with contingent disbursements:
Date of Disbursement

• If a disbursement is contingent upon the small business meeting specific conditions (such
as benchmarks or performance hurdles), submit a separate Form 1031 for that disbursement
when it is made.
•

Do not include these contingent disbursements in the initial Form 1031 filing.

•

Note: Routine debt covenants do not trigger separate Form 1031 filings.

Example for financings with multiple, non-contingent disbursements: ABC SBIC signs an
agreement on January 1, 2021, to provide Acme Co. $1 million in the form of a loan,
which would be disbursed in three different tranches on January 2, 2021, February 2,
2021, and March 2, 2021. ABC SBIC would create one record for the $1 million loan, with
January 1, 2021, identified as the Date of Financing, and January 2, 2021, as the
disbursement date. Although loans would be disbursed over 3 tranches, the SBIC only
needs to enter the date of the first disbursement.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Field/Label Instructions/Description
1st Financing of the
Company by Licensee?

Select “Yes” if this is the first Financing of the portfolio concern by the Licensee. Otherwise,
select “No”.

Licensee Led Investment

Select “Yes” if the Licensee led or co-led the portfolio company deal/round of financing.

Primary Investment Type
& Secondary Investment
Type

Primary Investment Type is based on dollar amount. So If the investment is $10.0M
subordinated debt and $1.0M common equity, the primary investment type is the
subordinated debt. Secondary Investment type would be the common equity. Choose
primary investment type and secondary investment type (if applicable) from the dropdown list.
Enter the amounts provided as loans, debt, and equity provided by the Licensee as its part of
the Financing. The total Licensee Financing will be automatically calculated based on your
entries.

Financing Instruments and
Applicable Amounts
For example, if the Licensee provides as part of the same Financing $5 million in Debt and
$2.5 million in equity, this would be identified as a single Financing with $5 million identified
in the column labelled “Debt” and $2.5 million in the column labelled “Equity”.

Total Size of Deal or
Financing Round

Interest Rate
Resulting Ownership

Enter the total dollars provided by the Licensee and ALL other capital providers in a given
deal, including dollars provided in the form of revolvers, senior debt, subordinated debt,
preferred equity, common equity, and any other financing instrument.
If your Financing includes a Loan, enter the interest rate as a percentage under “Loan Rate”. If
your Financing includes a Debt Security, enter the interest rate as a percentage under “Debt
Security”. If your rate is by contract fixed to another rate, enter the rate(s) at the time of
Financing and note this in the Financing Comments under column Q. The blended rate will be
calculated based on the amounts and rates you entered.
Enter the ownership percentage (on a fully diluted basis) of the SBIC following this Financing,
including holdings of all prior investments.
Enter the percentage of the Total Licensee Financing amount that will be used towards
the activities identified in the columns under the header “Purpose of Financings (Should
total 100%).” Column titled “Not Categorized” will identify what percentage has not been
allocated. This figure should be zero. If the figure is other than zero, please explain in the
column titled “Financing/Amendments Comments”.

The activities identified include the following:

Purpose of Financing

•

Working Capital or Inventory Purchase

•

Plant Modernization or Leasehold Improvement

•

Acquisition of All or Part of an Existing Business

•

ESOP Conversion

•

Consolidation of Obligations or Non-SBIC Debt Refunding

•

New Building or Plant Construction

•

Acquisition of Machinery and Equipment

•

Land Acquisition or Dwelling Construction

•

Marketing Activities

•

Research and Development

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Field/Label Instructions/Description

Qualifications to Issue
Special Use Discount
Debentures

To use SBA’s Discount Debentures, the proceeds must be used for either Low and Moderate
Income (LMI) investments or Energy Saving Qualified Investments (ESQI). If you are using one
of these Debentures, you should select “Yes” under the appropriate qualifier. Otherwise,
select “No”. SBA uses this information to identify which investments
need to be reviewed to assess whether they meet the appropriate qualifications. You should
be
sure to maintain all necessary documentation as required in 13 CFR part 107.
Additional Leverage Qualifications (aka "Bonus Leverage") are outlined in 13 C.F.R. §
107.1150(d). If the portfolio company falls under any of these categories, you should click
Yes under the appropriate qualifier, otherwise leave blank or select No. All terms below are
defined in § 107.50

Additional Leverage
Qualifications

•

Low-Income Geographic Area

•

Energy Saving Investment

•

Rural Area

•

Small Manufacturer

•

Covered Technology

If Yes to Covered Technology, specify which category as defined under 10 U.S.C. § 149(h)) and
provide a short explanatory narrative.
If you used a passive business to finance the portfolio company, under column titled “Uses
Passive Business”, you would select “Yes” to indicate to SBA that a passive business is used.

Passive Business
Information

If you identify that your portfolio concern was financed using a passive business, you
must provide a separate file that provides the information detailed in Part D, including
the qualifying exception, the passive business entities, and a description of the Financing.
Column AG will identify how you should name your PDF file so that SBA can relate it to
the appropriate Financing, as “PB_” concatenated with your license number, the
employer ID number of the portfolio concern, the date of financing in “yyyymmdd”
format and “.PDF”.

D. Part D – Passive Business Financing Information.
You must provide Passive Business Financing information for each Financing that you
identified as a passive business under Part C. Each file must include the following information:
• Qualifying Exception: Identify the qualifying exception under which the passive
business Financing was performed (either the §107.720(b)(2) exception for pass-through of
proceeds to subsidiary or the §107.720(b)(3) exception for certain Partnership Licensees). If
the Financing was performed pursuant to §107.720(b)(3), identify the qualifying reason.

Passive Business Entities: For each passive business involved in the Financing, provide
the name and employer ID.
•

•

Financing Structure Description: Describe the Financing structure, including the flow of
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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

the money from the SBIC through each passive entity to the non-passive Small Business
(including amounts and types of securities), and the ownership between the SBIC through each
entity to the non- passive Small Business. If the Financing was performed pursuant to
§107.720(b)(2), provide sufficient ownership information to show that the non-passive Small
Business qualifies as a “subsidiary” of the passive entity that received the financing. You may
use diagrams to help explain your structure, if beneficial.
E. Part E – General Information
This part identifies general information regarding the Form 1031 and instructions. No
inputs are required.
F. Certification
This worksheet pulls information from Part C such that you can certify to its accuracy. You
will need to add the name, title, signature, and signature date for the person certifying on
behalf of the Licensee.
In addition to submitting this form electronically, in MS Excel format, the Licensee is
instructed to print the entirety of this form (i.e., all pages thereof), ensuring that all cells
containing information are printed visibly, to execute the printed form, and to submit a .pdf
copy of the printed form.

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